Press release
Tánaiste commences Companies Act 2020
From Department of Enterprise, Trade and Employment
Published on
Last updated on
From Department of Enterprise, Trade and Employment
Published on
Last updated on
The Tánaiste and Minister of Enterprise, Trade and Employment Leo Varadkar has signed the order commencing the Companies (Miscellaneous Provisions) (Covid-19) Act 2020.
The Tánaiste said:
"This order will make some changes which will make it easier for companies to operate during the pandemic. From today, companies can hold their AGMs remotely, ensuring they can comply with their statutory obligations while observing the government’s public health advice.
"The Act also makes temporary amendments to insolvency provisions by increasing the period of examinership to 150 days and increasing the threshold at which a company is deemed unable to pay its debts to €50,000. These important amendments will provide additional breathing space to struggling businesses and complement the package provided in the July stimulus."
The Act makes temporary amendments to the Companies Act 2014 and the Industrial and Provident Societies Acts 1893 – 2018 to address issues arising as a result of COVID-19.
Minister for Trade Promotion, Digital and Companies Regulation, Robert Troy TD, said:
"This Act is an important first phase of work in the area of company law to provide common sense, practical solutions to the issues faced by over 200,000 businesses in Ireland. It is a welcome development that companies and cooperatives can now hold general meetings remotely allowing them to comply with their statutory obligations and adhere to public health guidance. Importantly, the Act also provides support to businesses struggling financially by increasing examinership to 150 days and increasing the threshold at which a company is deemed unable to pay its debts to €50k. I believe these amendments will facilitate the survival and recovery of viable businesses in towns and cities across Ireland."
ENDS
The main provisions of the Act can be summarised as follows, to:
The main provisions in relation to co-operatives include, to:
As a result of previous amendments to the Industrial and Provident Societies Acts in 1978 and 2014, the company law proposals on examinership and creditors meetings automatically apply to co-operatives.